Insurer Travelers' Q1 core profit beats on lower catastrophe losses

The Travelers Companies

16/04/2026 12:07

Overview

U.S. property casualty insurer's Q1 core EPS beat analyst expectations, revenue was nearly flat yr/yr

Net income surged, driven by lower catastrophe losses and higher net investment income

Company raised quarterly dividend 14% and returned $2.2 bln to shareholders

Outlook

Travelers expects the full-year 2026 expense ratio to be approximately 28.5%

Company says Board raised quarterly dividend 14% to $1.25 per share, reflecting confidence in outlook

Travelers says it is confident its competitive advantages will continue to drive strong results

Result Drivers

LOWER CATASTROPHE LOSSES - Core income and net income increased primarily due to a sharp decline in catastrophe losses compared to the prior year

HIGHER NET INVESTMENT INCOME - Net investment income rose 9% after-tax, benefiting from higher yields and growth in average invested assets

FAVORABLE PRIOR YEAR RESERVE DEVELOPMENT - All segments saw net favorable prior year reserve development, contributing to underwriting gains

Company press release: ID:nBw6kFFpHa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$11.92 bln
Q1 Core EPS
Beat
$7.71
$7.08 (24 Analysts)
Q1 EPS
$7.78
Q1 Net Income
$1.71 bln
Q1 Combined Ratio
88.60%
Q1 Dividend
$1.25
Q1 Underlying Combined Ratio
85.30%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 18 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the property & casualty insurance peer group is "buy."

Wall Street's median 12-month price target for Travelers Companies Inc is $310.00, about 3.6% above its April 15 closing price of $299.33

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)